Personal checks poised to be a relic
Filed under: Banks, Technology, Banking - Checking Account
Is the personal check on its way out?The Dallas Morning News recently suggested that -- and, no, they aren't the first to suggest it, nor will they be the last -- but they point out that several stores lately have made it their policy to refuse personal paper checks: Diesel, True Religion, Ed Hardy and Lululemon Athletica, which are all clothing stores. And maybe there's something in the water, since the clothing giant Gap is also exploring the concept of no longer accepting personal checks.
My WalletPop colleague Martha C. White has also written about Whole Foods no longer accepting checks in some stores, as part of a get-rid-of-checks experiment.
There are plenty of reasons not to like paper personal checks. As the Kansas City Star recently reported, in the Kansas City, Mo., area, there have been a lot of check forgeries, stemming from some robberies from mailboxes. Thieves actually stole bills and then they used the checking account numbers and routing numbers to create fake checks. Now that is scary. These crooks got away with $3,500 until the victims realized what was happening and presumably canceled their accounts.
The National Retail Federation, meanwhile, in its annual survey on how Americans plan to spend their money, reports that just 4% of shoppers plan to pay for gifts with personal checks.
Small wonder, really -- I know I find it harder to keep track of my money if there's an uncashed check of mine floating out there. More and more, I wind up paying most of my bills online, and generally, if I have to make a purchase, I use a debit card, or even occasionally, wonder of wonders: cash.
And yet I admit I'm not ready to say goodbye to the personal check yet. I have no doubt that the fate of the personal check belongs in a museum. But there are times when I can appreciate its usefulness. Sometimes I need to have my bank routing number, and when I do, what I do is, look at my checkbook. If I didn't have personal checks, I'd have to call my bank (I know; in the grand scheme of things, big deal).
There are scenarios I can think of when a personal check comes in handy -- writing one to put in a nephew's birthday card, for instance, or if you owe a friend money and he or she doesn't take debit cards.
And then last week I went to the grocery store, and as the cashier started to ring everything up, I whipped out my wallet and realized my debit card wasn't there but somewhere back at my house.
I left my groceries with the assistant manager, and told her that I'd be back soon, but it was getting late into the evening, and having to race back to my house and back to the store and then back to the house was going to eat up a lot of the time I was planning to spend with my kids before their bedtime. Not a disaster, of course, but an annoyance -- but then I was saved from that annoyance when I found a book of checks in my car's glove compartment. Suddenly, personal checks seemed like the greatest thing in the world.
People can criticize checks all they want, griping that they take a lot of time to write and that they're outdated. All points are true, and I'm fairly sure that my 5-year-old and 8-year-old daughters won't ever write a personal check when they're adults. But last week, the personal check saved me time and (gas) money. For now, I'm not sorry they're still around.
Geoff Williams is a frequent contributor to WalletPop, often writing about banking-related issues. He is also the co-author of the upcoming book, "Living Well with Bad Credit."
Reader Comments (Page 1 of 6)
11-23-2009 @ 4:15PM
Bob said...
Glad I don't live anywhere near those stores. I certainly won't be patronizing them.......or anyone else that won't accept a personal check. Hope they go out of business real soon.
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11-24-2009 @ 8:59PM
CJ said...
I agree. It's another scam to force another fee on you and a way of forcing you into a lifestyle that you may not particularly want.
11-24-2009 @ 11:12PM
T. Wells said...
Right on.. I hope so too.. as far as whole foods go I don't/won't ever patronize your ass because one your too OVERPRICED.. and far as the other clothing stores mentioned.... who cares I don't shop at your stores anyway and NEVER will..Thank god for TARGET and WALMART and KMART. I will ALWAYS write checks and use my card when I see fit NOT when you see fit. I still write checks out for my house bills and always WILL. What about the elderly people who still write checks (like my mom) they're not into the new age thing.........they didn't come up in these new technology times. It aint all ABOUT YOU yanno...
11-24-2009 @ 11:18PM
Banker Joe said...
THEY MIGHT WANT TO RE-THINK THAT POLICY SINCE MOST UNEMPLOYED PEOPLE DON'T QUALIFY FOR A CREDIT CARD. 34.5% UNEMPLOYMENT AMONG BLACK MEN NOW. HOW'S THAT HOPE AND CHANGE WORKING IN "DA HOOD"?
11-24-2009 @ 11:44PM
Lloyd Bruner said...
If a store refuses your check, why not just pay for your purchases in $1 bills - 1 at a time. They are legal tender - for all debts - public and private. Bet they'd rather have your check the next time.
11-25-2009 @ 2:17AM
spencerg said...
Don't live near these stores? Hell, I have never even HEARD of these stores. Obviously Gap and Whole Foods are well known but the others are news to me!
11-25-2009 @ 3:13AM
gr8bsn said...
Please don't then. You really write that many checks that it makes a difference for you?
11-24-2009 @ 8:04PM
jbjg24m said...
debit cards are the way to pay for sutff now ! speeds up the checkout line !
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11-28-2009 @ 10:27AM
stx said...
u idiot , why would u pay with a debit card when a credit card would give you about 3% cash back just for using it? I used over $700 dollars of free rebates from my credit card for car repairs/service already this year just by using my credit card instead of my debit card.
11-25-2009 @ 4:52AM
joani said...
I can tell you're super fast, since you can't slow down to spell.
11-24-2009 @ 8:15PM
Lisa said...
I refuse to bank online!!! Too many banks have been hacked into. I just will not patronize those stores that will not accept my check!!
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11-30-2009 @ 7:01PM
Lola said...
Name one online banking concern that's been hacked. You can't, because there haven't been any.
11-24-2009 @ 9:18PM
mezl said...
i agree whole heartedly. people should not be forced to use some thing they do not feel comfortable with. may be we can start a no credit advocacy group!!! ; )
11-25-2009 @ 3:52AM
Judy said...
I agree with you Lisa, I like my ole' reliable checks. I do not like giving out my credit card # online and refuse to do so to pay my bills. I do hope this does not come into existence, it is not right to make someone give up the way a person pays their bills What is happening to our rights as US Citizens!!????
11-25-2009 @ 4:52AM
joani said...
I agree with most of the individuals that believe in freedom, common sense and principle with checks still remaining legal tender; more reliable than cash or credit. On more than one occasion paying a bill over the phone, in a restaurant and online have I had to fight and even write to the FCC to get back MY MONEY! Anyone can write down your info and your "security code" on the back. I'm tired of paying some strangers bills while having to fight to keep a nominal credit score because I've paid with debit and/or credit cards and not been able to pay my own as my accounts have been both racked up and once even wiped out to the point I could not even put gas in my car after work...on an empty tank!
11-24-2009 @ 8:36PM
Whatnext? said...
I hardly think the $3500 the thieves took when they stole those checks compares with the horror stories we read about online fiascos. Leave me and my checks alone! People are always in such a hurry - no wonder there is so much cardiovascular disease. And as far as the author having to call his bank for a routing number, believe me, they will eventually charge you for that too!
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11-24-2009 @ 11:08PM
shell said...
Checks hold up lines no more than debit/credit cards that do becuase the banks have a problem in their system or something else(I had to wait 40 minutes when I was buying milk for my baby on vaction becuase the bank person forgot to put in the system I was going on vaction which I called and told them ahead of time so it blocked my card becuase I was in a different state and not even an apology)..As far as not keeping track of your money becuase of a check still out you simply write it down in the ledger.I'm afraid of using credit/debit now in our area several resturaunts have had people swiping the cards and stealing your info..I like the idea of a card but not the hassels or wondering what the clerk is doing with it...
11-24-2009 @ 9:32PM
tojo said...
This is America, it's time to take our country back from this "Corporate Scum".
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11-24-2009 @ 10:12PM
Joseph Papierz Jr said...
Checks are no big deal. The article says they hold up the line because they take so long to write out. Well, it seems so if the dumb customer waits until the clerk pushes the total button before even looking for their check book. When I plan to write a check I always have everything filled out except for the amount before I get in line. To save a second or two I don't write the amount into the check register at the counter, I put the register tape in my checkbook and do it at home. A very small delay by comparison to the dope that has to search their purse and body for their checkbook.
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11-24-2009 @ 8:38PM
karen said...
I'm NOT paying $4.00 per transaction to pay ANY bill online. What a ripoff. I like using the debit card at stores but keep close track of my account.
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